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7 Reasons Why Your Parents Need a Separate Health Insurance Plan
As your parents age, their health needs become more specific and unpredictable. While a family floater plan may seem convenient, it might not provide the specialized coverage they truly need.
Your parents often require higher coverage for age-related illnesses and a separate health insurance plan ensures they get priority medical attention, better hospitalization benefits, and coverage tailored to their unique health risks.
Don’t Forget! Investing in their health today ensures they receive the best care without financial strain tomorrow. 🙂 So, read this article to know 7 reasons why you need a separate health insurance plan for parents.
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7 Reasons for Buying Separate Health Insurance for Parents
Benefits of Having a Separate Health Insurance Plan for Your Parents
As necessary as health coverage is, it is always better to buy separate health insurance for parents rather than clubbing them with your own policy.
Here are 7 reasons why it is important to buy separate health insurance for your parents.
1. Higher Coverage Available vs Shared Coverage in Family Insurance
When you include your parents in your health insurance policy, the total coverage available is shared among all the members of the policy. This means that if one family member makes a claim, the coverage available for others reduces.
On the other hand, when you buy a separate health insurance policy for your parents, the entire coverage is dedicated to them, ensuring that they get the necessary medical care without worrying about the expenses.
2. Affordable Premium Rates
Health insurance premiums for senior citizens are generally higher than those for younger individuals. When you include your parents in your policy, the premium for the entire policy is based on the age of the eldest member. This means that if one of your parents is a senior citizen, the premium for the entire policy will be higher.
On the other hand, when you buy a separate health insurance policy for your parents, the premium is based on their age and health condition, ensuring that you get the best possible rates.
Also, Know about: Health Insurance Premium Calculator Online in India
3. Get Your Policy Customized as Per Your Health Requirements
Every individual has unique healthcare needs, and these needs differ with age. When you buy a separate health insurance policy for your parents, you can customize the policy to suit their specific healthcare needs. This ensures that they get the necessary coverage for all medical expenses, including hospitalization, doctor's fees, diagnostic tests, and medication.
4. Optimising the No-Claim Bonus
When you include your parents in your health insurance policy, the no-claim bonus is shared between all the members of the policy. However, when you buy a separate health insurance policy for your parents, they can avail the no-claim bonus if they have not made any claims during the policy period. This bonus can help reduce the cost of the health insurance plan and provide additional benefits.
On the other hand, the chances of falling ill increase with age. Hence, including parents in family policy would reduce the possibility of claiming NCB in the family policy.
Thus, it's a better option to buy a separate health insurance for parents.
5. Additional Tax Benefits for Senior Citizens
When you buy a separate health insurance policy for your parents, you can claim tax benefits under Section 80D of the Income Tax Act. This ensures that you get additional tax benefits in for the premium paid towards your tax benefits in health insurance plan.
In conclusion, buying a separate health insurance policy for your parents is always a better option than clubbing them with your own policy. It offers higher coverage, lower premiums, customization, no-claim bonus and tax benefits, ensuring that your parents get the necessary medical care without worrying about the expenses.
Therefore, it is highly recommended that you opt for a separate health insurance policy for your parents to safeguard them from unforeseen medical expenses.
6. Pre-Existing Diseases
People with pre-existing conditions pay relatively high premiums for health insurance policies, which raises your monthly premium costs. For someone with pre-existing problems, it is, therefore, wise to choose a different policy. Additionally, our parents should have their own health insurance coverage because they are more likely to become ill as they age and have pre-existing diseases.
The list of pre-existing diseases includes diabetes, arthritis, cataracts, heart disease, high cholesterol, asthma, etc.
In addition to covering medical costs, parent health insurance policies provide wellness benefits such as advice on routine nutrition, food, lifestyle, and general health.
7. Wellness Benefits
Beyond health insurance coverage, a health insurance policy can offer several other wellness benefits to your parents. It can include guidance on lifestyle, diet, nutrition and overall health.
Your parents will get healthier over time if they participate in a wellness program that teaches them how to make healthy decisions.
The wellness benefits also include teleconsultation with doctors, online medicine orders, lab tests, self-tests and several extra-curricular activities. These benefits differ in several insurance companies. Hence, you must check your parents' wellness benefits as well.
Factors To Consider While Buying Separate Health Insurance Plans For Parents
When buying health insurance policies for your parents, you need to consider several crucial factors to ensure affordability and complete coverage. You can customise your plan considering these crucial factors to get the best health insurance plan for parents.
Sum Insured
Considering the rising inflation, choosing a sufficient sum insured should be your top priority.
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Hospitalisation Cover
Make sure the plan you select covers a variety of hospitalization expenditures, such as inpatient costs, pre- and post-hospitalization fees, daycare care, domiciliary care, etc.
Premium
Confirm the premium amounts. Make sure these factors are reasonable and within your budget.
Network Hospital
The ideal health insurance for parents will include reputable, easily accessible hospitals and healthcare professionals. Digit currently offers 9000+ network hospitals with easy cashless claims. 🙂
PED & Waiting Period
Pay attention to the policy's pre-existing condition provisions with a waiting period. Certain plans might cover pre-existing conditions right away, while others might have waiting periods.
Day Care Treatments
Kidney dialysis, cataract surgery, and other treatments are some daycare treatments that can be finished in a few hours (less than 24 hours). Make sure the plan covers your parents if they have a medical condition that necessitates such daycare operations.
AYUSH Treatment
Ayurveda, Yoga, Unani, Siddha, and Homeopathy are all part of AYUSH. You might find a plan that pays for AYUSH treatments if your parents choose them for their medical issues.
Limits and Co-payment
Check for the sub-limits, room rent limit, co-payment, deductibles and exclusions in the policy to avoid surprises later.
It is your responsibility to safeguard the health and welfare of your parents, who have raised you your entire life. Their bodies become fragile with age, making them more vulnerable to illnesses and diseases.
Therefore, it's critical to make sure your parents have the support and care they require to maintain their health. Therefore, one crucial step in protecting your parents' health and general well-being is to purchase a separate health insurance coverage for them.
Remember! They took care of your health when you were young; now it’s your turn to secure theirs as they grow old. 🙂
FAQs about Buying Separate Health Insurance for Parents
Can I Buy Separate Health Insurance for each of my Parents or Should I Combine them into a Single Policy?
You have the option to purchase separate health insurance policies for each of your parents. It allows you to tailor the coverage and benefits according to their individual healthcare needs. However, combining them into a single policy is also possible if it better suits your requirements.
Can I include my Parents-in-Law in a Separate Health Insurance Policy?
Yes, many insurance providers offer the option to include parents-in-law in a separate health insurance policy. However, it is essential to review the policy terms and conditions, as eligibility criteria may vary among insurers.
Can I switch from a Family Health Insurance Policy to a Separate Policy for my Parents?
Yes, you can switch from a family health insurance policy to a separate policy for your parents. You can inquire with your insurance provider about the process for making such a switch and any necessary documentation or underwriting requirements.
Is it necessary to Disclose Pre-Existing Conditions When Buying a Separate Health Insurance Policy for Parents?
Yes, it is crucial to disclose pre-existing conditions when purchasing a separate health insurance policy for parents. Insurance companies require accurate disclosure of pre-existing conditions to determine the coverage and premium rates. Failure to disclose pre-existing conditions may result in claim rejections or policy cancellations.
Can I purchase a Separate Health Insurance Policy for my Parents if they Already have Existing Coverage?
Yes, it is possible to buy a separate health insurance policy for your parents even if they already have existing coverage. However, it is essential to review the terms and conditions of both for maximum advantage.
Is it wise to purchase critical illness insurance for your parents?
Yes, it is wise to purchase critical illness insurance for your parents because you can receive the entire insured amount as a one-time payment from critical illness coverage, which may help your parents. Your parents might require additional facilities in addition to medical treatment to recover from a terminal disease. You will benefit from the lump sum you got during a critical illness claim.
Why should we use greater caution while buying insurance for senior citizens?
Senior citizen health plans offer higher premiums since older people are more likely to have pre-existing conditions and to be at higher risk for health problems. For senior individuals, more thorough approaches are designed specifically to address age-related conditions and chronic disorders.
How much health insurance do I need for my parents?
The amount of health insurance you need for your parents depends on several factors, including their age, health condition, and the cost of healthcare in your area. Generally, it's advisable to have a coverage of at least ₹5-10 lakhs to cover major medical expenses. If your parents have pre-existing conditions or are older, you might want to consider a higher coverage amount.
Can I claim 80D for parents without health insurance?
Yes, you can claim deductions under Section 80D for medical expenses incurred for senior citizen parents (aged 60 years and above) even if they do not have health insurance. The maximum deduction allowed is ₹50,000 per financial year if your parents are above 60 years of age.
Can we get tax exemption on parents' health insurance?
Yes, you can get tax exemptions on the premiums paid for your parent's health insurance under Section 80D of the Income Tax Act. The deduction limit is ₹25,000 if your parents are below 60 years of age and ₹50,000 if they are senior citizens.
How do parents choose the right health insurance?
When choosing health insurance for your parents, consider the following factors:
- Coverage: Ensure the policy covers a wide range of medical conditions and treatments.
- Network Hospitals: Check if the insurance provider has a good network of hospitals in your area.
- Pre-existing Conditions: Look for policies with minimal waiting periods for pre-existing conditions.
- Premiums and Co-payments: Compare premiums and co-payment clauses to find a policy that fits your budget.
- Add-on Benefits: Consider additional benefits like critical illness cover, daily hospital cash, and ambulance charges.
Which age is best for parents to get health insurance?
It's best to get health insurance for your parents as early as possible. The younger they are when you purchase the policy, the lower the premiums will be. Additionally, early coverage helps deal with any pre-existing conditions and waiting periods.